Magnom Properties has revealed ongoing negotiations to acquire four land parcels totaling 80,000 square meters in Saudi Arabia and the UAE, as part of the development of the “Forbes International Tower” project, with a total investment of $4 billion.
Expansive Investment Plans
Dr. Maged Marie, CEO of Magnom Properties, stated that the company plans to launch four new projects with an investment budget of $4 billion. These projects will include two in Saudi Arabia (Jeddah and Riyadh) and two in the UAE, modeled after the “Forbes International Tower” project launched in Egypt.
“We aim for this project to be among the world’s most sustainable administrative projects in the region, setting a distinguished standard that fulfills our aspirations for leadership in sustainability,” Marie added.
Major Investments in Egypt
Marie explained that Magnom has already invested approximately $200 million in the “Forbes International Tower” mega-project in Egypt’s New Administrative Capital, which has a total investment cost of $1 billion and spans 20,000 square meters.
The company has commenced groundwork for the project, aiming for completion by 2028, with plans to sequentially finalize other projects in the region.
Self-Financing with Global Aspirations
Marie noted that Magnom currently relies on self-financing mechanisms within the group to fund its projects. However, he expects to pursue international funding sources in the future to bridge the gap between cash flow and construction costs, especially as the project progresses.
He disclosed that the company intends to initiate the first phase of construction in the New Administrative Capital next year, with an investment cost estimated between $650 million and $700 million.
Market Diversification and Mitigating Economic Fluctuations
Marie highlighted that diversifying markets for the company’s investments helps mitigate the impact of economic fluctuations, emphasizing the stability of the Egyptian real estate market and its rising demand, driven by an influx of foreign nationals seeking property amidst regional unrest.
A New Investment Model
Marie revealed that Magnom is currently exploring partnerships with several global brands to enter the Egyptian market through the “Forbes International Tower” project, aiming to attract high-profile “A+” clients. The company plans to collaborate with renowned brands that are eager to establish a suitable investment model catering to local market needs.
The Importance of Real Estate Investment Funds
Marie stressed the importance of launching real estate investment funds aligned with current market needs to support the real estate sector, especially in property development, and to attract foreign investors.
He pointed out that real estate funds contribute to project diversification across administrative, commercial, residential, and hospitality sectors, enabling faster returns and opening doors to greater project variety. Moreover, they hold the potential to attract an increasing number of foreign investors over time.
Marie noted that, unlike other markets, the concept of owning administrative buildings remains prevalent in Egypt.
He suggested that the market needs to shift its approach to align with the preferences of global companies looking to enter Egypt.
He added that most global corporations prefer leasing over ownership, and attracting foreign companies requires offering comprehensive services that allow them to focus on their core activities.
A Call for Collaborative Efforts
Marie called on both public and private sectors to work together to advance real estate investment funds in Egypt by coordinating with the Central Bank and the Financial Regulatory Authority to create an attractive investment environment for foreign capital.
Real Estate Exports as an Investment Opportunity
In a related context, Marie indicated that Egyptian real estate exports could be realized through development-oriented real estate investment funds, which offer competitive returns to attract foreign capital.
He emphasized that the competitive yield offered by these funds would be a draw for investors.
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